Getting in the land game early on

Since the recession of housing market, building projects stopped, Sales offices closed. Buyers vanished. “If there’s a silver lining to thedisaster market, it’s the buying opportunities, especially land-buying” says Amy Lee, the International realtor at Coldwell Banker Premier Properties Daytona Beach, Florida. “Let’s face it, the house market’s going to be recover, now it’s the time to buy land and position ahead for the next housing boom.”

Land was cheap. Many struggling developers were selling property at bargain rates to stay afloat. Some projects had gone bust and went back to lenders to be auctioned off to the highest bidders.

Many large home building firms across the nation, particularly publicly traded firms has began investing in land during the recession. By the end of 2012, Standard Pacific had spent $1.6 billion, accumulating almost 20,000 home sites in seven states in three years. The company plans to spend from $600 million to $900 million more on land in 2013.

Developers such as Lennar, Pulte Group, DR Horton and KB Home – four of the nation’s biggest builders – spent between $500 million to $1 billion apiece buying land in the past year. Standard Pacific – ranked 13th in the nation by Builder Magazine in terms of sales – has been one of the most aggressive property buyers.